If a partner's investment in a partnership consists of Accounts Receivable of $35000 and an Allowance for Doubtful Accounts of $7000 it would not be appropriate for the partnership to record the Allowance for Doubtful Accounts.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts should be recorded in the partnership's books as it reflects the estimated amount of accounts receivable that may not be collectible. By recording the allowance, the partnership can present a more accurate and conservative picture of its financial position.

If a Partner's Investment in a Partnership Consists of Accounts